Business Challenge story

To achieve its $450 million sales target, Duas Rodas wanted to expand internationally, but existing manufacturing assets were at the limits of capacity and it would be impossible to satisfy demand.

Transformation

Duas Rodas designed new enterprise-wide business processes and best practices, and deployed SAP ERP applications on an IBM Power Systems server platform to support the new way of working.

Results

80% faster

production planning

Helps

to satisfy demand in key international markets

Enables

senior management to ensure consistent governance

Business challenge story

Unlock growth potential of international markets

Founded in 1925 in Jaraguá do Sul, Brazil, Duas Rodas has grown to become one of the largest manufacturers of food and beverage additives in Latin America. Employing more than 1,400 people, the company has operations in Brazil, Argentina, Chile, Colombia, Peru and Mexico. Through more than 27 sales agents worldwide, Duas Rodas exports its products to thousands of clients in Latin America, North America, Europe, Africa, and Asia.

To help achieve its aggressive business target of USD 450 million in sales by 2015, Duas Rodas wanted to establish itself as a leading player in international markets. As a first step on its growth journey, the company invested in research and development facilities, manufacturing plants and dedicated sales centers across Latin America. Julio Cesar van Vossen, CIO at Duas Rodas Industrial Ltda., says: “In the past, our business units operated independently – which presented a significant challenge as the business grew. “For example, because we could not easily integrate data on client orders with information on inventory levels and production planning, it was almost impossible to achieve the manufacturing output we needed to satisfy demand. To avoid missing out on potential sales opportunities, we were keen to find a way to boost the throughput of our existing assets.”

He continues: “We also recognized that decentralized processes introduced an element of business risk. Without a complete and accurate overview of our operations, it was difficult for senior managers to ensure consistent governance across the business, confirm compliance with local regulations and assess potential risks.”

We have relied on IBM Power Systems servers for a number of years, and have always been highly satisfied by the platform’s high performance and stability.

—Julio Cesar van Vossen , CIO, Duas Rodas

Transformation story

Integrate information to boost efficiency

To eliminate information silos, Duas Rodas mapped its multiple existing processes, which included product development, manufacturing and logistics.

Working closely with representatives from across the business, the company designed an end-to-end, fully integrated business process – and determined the required changes to move from the current to the target state.

“After our planning exercise was complete, it was clear that our legacy management software would be unable to meet the requirements of a single, enterprise-wide process,” says Julio Cesar van Vossen.

“The previous solution was intended to serve the needs of much smaller companies, and only designed with the accounting requirements of Brazil-based businesses in mind.
To support our vision of a truly integrated, international Duas Rodas, we realized that we needed to implement a comprehensive ERP solution.”

After reviewing solutions from a number of different vendors, Duas Rodas selected SAP ERP software.

“We see SAP ERP software as nothing less than a world-class solution,” says Julio Cesar van Vossen. “In addition to an outstanding track record in similar implementations within the manufacturing industry, the SAP solution contained all of the functionalities we needed to support our new end-to-end business process – which convinced us that the software was the right fit for our requirements.” To enable a single business process, Duas Rodas implemented SAP ERP with applications for Finance, Controlling, Materials Management, Sales and Distribution, Production Planning, Research and Development, Project System, Quality Management, Plant Maintenance and Warehouse Management, together with the SAP Treasury and Risk Management application and the SAP Incentive Administration application by Vistex.

For actionable insights into business performance, the company deployed the SAP Business Warehouse application with SAP Process Integration technology and the SAP Business Planning and Consolidation application, version for SAP NetWeaver.

Next, Duas Rodas implemented the SAP Manufacturing Integration and Intelligence application to support its product lifecycle management
process, and installed the SAP Customer Relationship Management application with SAP Business Communications Management software to enable consistent customer service. To facilitate enterprise-wide governance, Duas Rodas deployed SAP solutions for governance, risk, and compliance.

With the SAP ERP solution at the heart of its international business operations, ensuring high levels of availability was a key priority.

To meet this requirement, the company chose the rock-solid reliability of an IBM® Power Systems™ server platform. Julio Cesar van Vossen says: “We have relied on IBM Power Systems servers for a number of years, and have always been highly satisfied by the platform’s high performance and stability. To deliver even greater levels of reliability, scalability and raw performance for our SAP ERP solution, we decided to upgrade to the latest POWER7® processor-based technology.”

Duas Rodas deployed one IBM Power® 770 server running IBM AIX® and connected to an IBM Storwize® V7000 Disk System, with an identical hardware configuration at a geographically separate data center. To deliver high availability for the SAP ERP applications, the company virtualized its compute resources with IBM PowerVM®, and implemented IBM PowerHA® for the virtual servers. “With IBM PowerVM virtualization, we are no longer restricted to the one-application-per-server model, and can host many virtual servers on a single machine,” notes Julio Cesar van Vossen. “Because our physical footprint is smaller, there is no need to expand our data centers, helping us to avoid additional capital expenditure.

“IBM PowerVM on POWER7 processor-based servers also enables us to manage business growth in a much more controlled way. For example, when we began the SAP ERP project, we had 17 virtualized servers; as our requirements grew, we scaled up to 59 virtualized servers. Despite a 247 percent increase in our number of virtual servers, our POWER7 processor-based platform accommodates the larger workloads easily. Because we can quickly and easily scale up systems to meet new demand, we can deliver a much more responsive service to the business.”

“If our SAP ERP applications went offline unexpectedly, the consequences for our business could be extremely serious,” says Julio Cesar van Vossen. “To complement the high performance, reliability and availability of the IBM Power Systems platform for our SAP ERP applications, we chose IBM Db2® 9.7 for Linux, UNIX and Windows with HADR.” Working together with consultants from IBM Advanced Business Partner Perallis, Duas Rodas established a high-availability configuration for its systems using the IBM Db2 high availability disaster recovery (HADR) feature.

Configured as a private network between its two data centers, HADR enables synchronous replication of the company’s mission-critical SAP ERP transaction data. Using IBM Tivoli® System Automation software included in the IBM Db2 license, Duas Rodas can almost instantly fail over production services to its secondary site, ensuring business continuity in the unlikely event of an unplanned outage.

“Delivering zero downtime to the business is a key priority, and IBM Db2 with HADR has helped us to achieve just that,” says Julio Cesar van Vossen.

“The HADR solution even enables us to perform essential maintenance tasks while the system is live, with no interruption to our SAP ERP applications. Furthermore, with IBM Tivoli System Automation controlling the failover of our production environment, we have the assurance of seamless business continuity in the event of an unexpected outage.”

Before deploying the SAP ERP solution with IBM Db2 HADR, IBM and Perallis invited Duas Rodas to participate in a number of ‘boot-camp’ training sessions. “Throughout the solution implementation process, the support we received from IBM and Perallis has been faultless,” says Julio Cesar van Vossen.

“The training sessions we attended were extremely valuable, and helped our team to get up to speed with management tools, such as SAP DBA Cockpit for IBM Db2, ahead of time. Armed with this knowledge, we were able to hit the ground running when the solution went live – greatly shortening our time-to-value.”

Results story

Boosting production planning efficiency by 80 percent

With the SAP ERP solution in place, Duas Rodas has achieved its goal of implementing a unified business process across the business – breaking down information silos and delivering full visibility of company-wide performance to senior decision-makers.

“In the past, our multiple business processes made production planning a complex task that took up to two hours per factory per day,” says Julio Cesar van Vossen. “Thanks to our SAP ERP solution, we can automatically integrate accurate, real-time data on client orders, inventory levels and production planning in a single system – reducing the complexity of the manufacturing process, and increasing our efficiency dramatically. Today, we can complete our daily production planning tasks in just 20 minutes – an improvement of 80 percent. Higher efficiency, enabled by the SAP solutions running on our IBM Power Systems platform, is now helping us to drive up our manufacturing throughout significantly, which will improve our ability to satisfy demand in key international markets.

“Additionally, our SAP ERP solution delivers a consistent, trusted source of information about each part of our business. This makes it significantly easier for our decision-makers to understand our exposure to governance, regulatory or operational risks – and helps them to take rapid action to address any inconsistencies.”

Based on the new enterprise-wide view of operations, Duas Rodas is using analytics technologies to deepen its understanding of business performance and uncover new ways to boost efficiency.

Combined with the IBM Db2 database, the company can deliver lightning-fast analytics query response times to decision-makers in the business. “Analytics from the SAP Business Warehouse application is one of the features of the SAP solution that we are most excited about,” says Julio Cesar van Vossen.

“Using the SAP Business Warehouse application, we are already gaining insights into: how long each manufacturing asset is running; how much time is required to fulfill each customer order; the quantity of raw materials used; and any deviations from the amounts of time and raw materials allocated to each customer order. The rich analytics data that the SAP solution will build can help us to better understand the real cost involved in producing our products, and fine-tune our business process to optimize efficiency.”

Julio Cesar van Vossen concludes: “The SAP ERP solution helps us achieve the integrated business process that we need to bring throughput up to the level of market demand. The supporting IBM Power Systems servers, IBM Db2 and high availability technologies ensure that we are able to operate 24/7 for a global marketplace, and the close partnership with IBM and Perallis means that we are well placed to achieve our USD 450 million sales target by 2015.”

business logo

About Duas Rodas

Founded in 1925 in Jaraguá do Sul, Brazil, Duas Rodas has grown to become one of the largest manufacturers of food and beverage additives in Latin America. Employing more than 1,400 people, the company has operations in Brazil, Argentina, Chile, Colombia, Peru and Mexico. Through more than 27 sales agents worldwide, Duas Rodas exports its products to thousands of clients in Latin America, North America, Europe, Africa, and Asia.

Solution components

  • Power Systems
  • Storage
  • Storage: Storwize V7000
  • IBM-SAP Alliance
  • PowerHA High Availability SW
  • PowerVM